A squeeze on banks: An increase of insurance premiums...

September 26, 1990

A squeeze on banks: An increase of insurance premiums planned by the Federal Deposit Insurance Corp. ``will squeeze the annual bottom line`` of some Illinois commercial banks, said William C. Harris, Illinois banking commissioner. Among the 834 state-chartered banks in Illinois are ``a few marginal earners``-about eight or nine banks-whose financial status could be threatened if the FDIC raises the premium from 12 cents per $100 of deposits in 1990 to 19.5 cents in 1991, Harris said. But he emphasized that ``no Illinois state-chartered bank is anticipated to be in danger of failing in the foreseeable future.``